Presentation Materials
for the 9th Fiscal Period Ended
August 2022
Securities Code: 3488

Basic Principles and Characteristics of XYMAX REITXYMAX REIT accurately assesses the value of individual properties to maximize unitholder value. We fully utilize ourstrength in Management, Assessment, and Sourcing based on the knowledge and know-how of the XYMAX Group, which
has Japan’s No.1 track record in property management.
Terms

Definition

Estimated value atthe end of period

Indicates the acquisition value appraised by the appraisers or the research
price based on the Articles of Incorporation of XYMAX REIT and the“Ordinance on Accountings of Investment Corporations” (Ministry of FinanceOrdinance No. 47 of 2006, as amended) with the last day of the current fiscal
period as the research dateUnrealized gain

Estimated value of real estate, etc. at the end of period – book value at theend of period

LTV based on total
assetsBalance of interest‐bearing liabilities / total assets

Appraisal LTV

Balance of interest‐bearing liabilities / (total assets + unrealized gain)

Net asset per unit

(Net asset ‐ total distribution) / total number of investment units issued andoutstanding

NAV per unit

(Net asset + unrealized gain ‐ total distribution) / total number ofinvestment units issued and outstanding

Acquisition price

The sales price of the acquired assets is indicated in each sales agreementand does not include consumption taxes, local taxes, and brokerage fees, etc.

Contents

Ⅰ. Management Highlights

Overview of Financial Results
Ⅱ.
and Earnings Forecasts
Ⅲ. Investment Status and Growth Strategy

Notes
 Unless otherwise specified, amounts are rounded to the nearest unit and ratios are rounded off tothe first decimal place.
 The following abbreviations of property names are used.

Ⅳ. ESG

Ⅴ. APPENDIXXYMAX Nishi-Shimbashi Building : Nishi-Shimbashi
XYMAX Iwamotocho Building
XYMAX Shinjuku-Gyoen Building : Shinjuku-Gyoen
XYMAX Kamiyacho Building
XYMAX Higashi-Azabu Building : Higashi-Azabu
XYMAX Higashi-Ueno Building
XYMAX Hachioji Building: Hachioji
XYMAX Mita Building
XYMAX Sapporo Odori Building : Sapporo
XYMAX Kiba koen Building
Muza Kawasaki: MuzaLife Kawasaki Miyuki Store
Vita Seiseki-Sakuragaoka: Seiseki-Sakuragaoka Life Fukuizumi StoreThe Park House Totsuka Front (the Retail Portions of 1st and 2nd Floors)
Valor Kachigawa Store (Leasehold land): Kachigawa
Hotel Vista Sendai: Sendai
Renaissance 21 Chihaya
L-Place Nishikasai: Nishikasai: Iwamotocho: Kamiyacho: Higashi-Ueno: Mita: Kiba: Kawasaki Miyuki: Fukuizumi: Totsuka: Chihaya2Management Highlights

Executive Summary The 9th FP results exceeded initial forecasts, with both sales and income up from the 8th FP.
 Expanding portfolio to 18 properties, 43.4 billion yen (based on acquisition price) through the public
offering on March 2022, etc.

 Operating revenue 1.87 billion yen (up 16.3% from the previous period, up 2.7% from initial forecast) DPU 4,019 yen (up 123 yen from the previous period, up 152 yen from initial forecast) The steady management of properties has driven both higher revenue and profits Offices: High occupancy rates were maintained through stable management, and both the contract
occupancy rate and economic occupancy rate were 99.2% at the end of 9th FP.
 Retail properties: Maintained 100% occupancy and secured stable revenue backed by fixed-rent contracts. In
spaces where tenant replacement occurred, contracts were concluded with no downtime at +15% rent
compared to the previous tenants.
 Hotel: Reported the highest performance since the COVID-19 pandemic, generating 25 million yen invariable rent.

 Newly acquired external ratings and ESG-related certification
 In June 2022, acquired the long-term issuer rating of A- from R&I.

 Acquired a 3 Star rating and a Green Star designation in the GRESB Real Estate Assessment, and Level A for
the GRESB Public Disclosure.
 Three properties recently acquired Environmental Certifications (BELS: 1 property, CASBEE: 2 properties).
3

Management Highlights

New Assets Acquired in 9th FP
Conducted a public offering and acquired three properties (acquisition price: 7.6 billion yen) at the
beginning of 9th FP.
┃Assets acquired through the public offering┃
Asset type

OfficeOfficeOther (Residential)

Property nameXYMAX Sapporo Odori Building

XYMAX Kiba koen Building

L-Place Nishikasai

Location

5-10, Odori-nishi, Chuo-ku, Sapporo-shi, Hokkaido

5-11-13, Kiba, Koto-ku, Tokyo

6-3-10, Nishikasai, Edogawa-ku, Tokyo

Acquisition price (million yen)

4,707

2,003

901

Leasable area

3,106.42m2

2,587.13m2

2,044.18m2

Completion

September 2020

October 1992

June 1986┃Portfolio Data at the end of 9th FP ┃ *The breakdown is based on the acquisition price
Percentage by geographic area

Percentage by asset type■Office

2.1%
10.1%

■Retail■Hotel■Others■Main asset

7.5%
23.4%

34.2%

29.5%

■5 wards of Tokyo*■23 wards of Tokyo excl. 5 wards■Tokyo economic area**■Designated cities■Others■Tokyo metropolitan area**Chiyoda, Chuo, Minato, Shinjuku and

58.3%

97.9%

Shibuya wards within Tokyo.

25.6%**Tokyo (excl. 23 wards of Tokyo),

9.3%
69.1%

and prefectures of Kanagawa,
Saitama, and Chiba.

Percentage by years engaged by XYMAX Group

23.6%

30.2%
Average

5.8%

11.5
years

23.1%

■Less than 5 yrs.
■5〜10 yrs.
■10〜15 yrs.
■15〜20 yrs.
■Over 20 yrs.
■Over 5 yrs.
*The average shows the simple average

17.3%
69.8%

4

Management Highlights

Key Factors (at the end of 9th FP)
Debt

Asset
Number of properties

18

Asset size (based on
acquisition price)

43.4 billion yen

Appraisal value

19.9 billion yen

LTV based on total assets

41.0%

Appraisal LTV

33.7%

Average borrowing rate*1

0.632%

54.6 billion yen

Unrealized gains(unrealized gain ratio)

10.4 billion yen (+23.7%)

Average remaining period

2 years 5 months

Profitability(based on acquisition price)appraisal NOI yield: 5.7%
appraisal NOI yield after
depreciation: 5.0%

Fixed interest rate ratio

96.5%

Average building age(weighted average ofacquisition price)19.1 years

Total leasable area

85,317.99 ㎡

Occupancy rate
(entire portfolio)

99.7%

Asset type(based on acquisition price)*1:

Balance of interest-bearing
liabilities

Office:Retail:Hotel:
Others:

58.3%
29.5%
10.1%
2.1%

Interest rate for floating rate borrowings is calculated based on the JBA 1-month Japanese Yen TIBOR as of August 31, 2022.

EquityAggregate market value

31.4 billion yen

Unitholders’ capital

25.4 billion yen(Total number of investment units
issued and outstanding: 249,650)

Investment unit price

126,100 yen

Net asset per unit

101,903 yen

NAV per unit

143,867 yen

Distribution per unit

3,120 yen (10th FP forecast)5

Overview of Financial Resultsand Earnings Forecasts

Overview of Financial Results and Earnings Forecasts

Overview of Financial Results
Operating revenue was 1,874 million yen, up 16.3% and net income was 1,003 million yen, up 15.3% from the previous
period, respectively.
Unit: million yen
the 8th FP (A)Actual results
for the 9th FP (B)Leasing business revenue

1,289

1,523

233

Rent revenue (four new properties*1 +267/existing properties*2 +23/property
sold*3 -86)/Hotel rent (variable rent +25)

Other leasing businessrevenue

102

125

22

Other revenue (four new properties +16/property sold -6),
Rise in electricity charges (fuel cost adjustment fees, etc.) (existing properties +11)

Gain on sale of real estate
properties

219

226

6

1,611

1,874

262

Operating revenue
Expenses related toleasing business(Excluding Depreciation)(B) — (A)Main factors for difference (B)‐(A)

348

398

49

1,043

1,250

206

142

158

16

901

1,091

190

173

195

21

946

1,121

175

Non‐operating income

0

0

–0

Non‐operating expenses

75

117

41

Ordinary income

871

1,004

133

Net income

870

1,003

133

3,896

4,019*4

123

NOI
Depreciation
Leasing business income
Other operating expenses
Operating income

Distribution per unit (yen)Property operating expenses (four new properties +32/properties sold -23),
Rise in electricity charges (fuel cost adjustment fees, etc.) (existing properties +14),
Repair expenses (existing properties +18)

Ratings and ESG promotion expenses (+7)
Linked compensation in acquisition of four new properties, etc. (+11)

Interest and borrowing related expenses on acquisition of four new properties (+37)

Comparison with the distribution forecast released in April 2022 (3,867 yen) +152
yenDays: 8th FP: 181 days, 9th FP: 184 days, Number of investment units issued and outstanding: 8th FP: 223,400, 9th FP: 249,650*1: Four new properties: Kachigawa, Sapporo, Kiba koen, and Nishikasai *2: The existing properties: Assets owned at the end of the 8th FP excluding Kachigawa and Chihaya *3: Property sold : Renaissance 21 Chihaya *4: Includes a
distribution in excess of earnings per unit of 12 yen related to the allowance for temporary differences adjustments.

7

Overview of Financial Results and Earnings Forecasts

Earnings Forecast for the 10th FP ending February 2023
Unit: million yen
the 10th FP
forecast (B)the 9th FP (A)Difference(B) — (A)Main factors for difference (B)‐(A)Leasing business revenue

1,523

1,492

–31

Hotel rent revenue (fixed rent +3/variable rent -22）

Other leasing businessrevenue

125

143

17

Increase in electricity charges invoiced to tenants (+13)

Gain on sale of real estate
properties

226

-

–226

1,874

1,635

–239

398

429

31

1,250

1,205

–44

158

159

0

1,091

1,046

–45

195

157

–37

1,121

888

–233

Non‐operating income

0

0

–0

Non‐operating expenses

117

108

–9

Ordinary income

1,004

779

–224

Net income

1,003

778

–224

Distribution per unit (yen)

4,019

3,120

–899

Operating revenue
Expenses related to leasing
business (Excluding
Depreciation)
NOI
Depreciation
Leasing business income
Other operating expenses
Operating income

Days: 9th FP: 184 days, 10th FP: 181 days

Property sold (-226)

Increase in electricity charges due to contract replacements (+13)
Property operating expenses (increase in electricity unit rates and various costs+4)

Disposition fees (–33)

Interest and borrowing-related expenses on refinance (–10)

Comparison with the distribution forecast released in April 2022 (3,091 yen)
+29 yen8

Overview of Financial Results and Earnings Forecasts

Earnings Forecast for the 11th FP ending August 2023
Unit: million yen

the 10th FP
forecast (A)the 11th FP
forecast (B)Difference(B)‐(A)

Main factors for difference (B)‐(A)Leasing business revenue

1,492

1,498

6

Hotel rent revenue (variable rent +9)

Other leasing businessrevenue

143

147

4

Increase in electricity charges invoiced to tenants (+11)

-

-

-

1,635

1,646

11

429

462

33

1,205

1,183

–21

159

165

5

1,046

1,018

–27

157

165

7

888

852

–35

Non‐operating income

0

0

-

Non‐operating expenses

108

88

–19

Ordinary income

779

764

–15

Net income

778

763

–15

3,120

3,058

–62

Gain on sale of real estate
properties
Operating revenue
Expenses related toleasing business(Excluding Depreciation)
NOI
Depreciation
Leasing business income
Other operating expenses
Operating income

Distribution per unit (yen)Days: 10th FP: 181 days, 11th FP: 184 days

Increase in electricity charges due to contract replacements (+13)
Tax and public dues (four new properties +17)

Unitholder General Meetings expenses (+5)

Loan-related expenses stripped out and interest increased due to refinancing
(-19)

9

Investment Status and Growth Strategy

Investment Status and Growth Strategy

Status of Office Tenant –Occupancy Rate & Tenant Replacements –Despite the continued downtrend in the office leasing market, sponsor group’s operational capability have enabled it tomaintain high occupancy rates┃Status of occupancy rate & tenant replacements┃
Target area for the 9th FP: 8,212.46 tsubo• Office properties (exc. obligated residences)

98.9%

96.4%

94.3%

98.9%
（tsubo）

93.7%

-100

98.8%

99.2%

99.0%

Average271.880.4%
97.59-169.22

Contract occupancy rate
at the end of FP-2.7%

348.53

0.9%
76.23

25.94

-2.8%

0.5%

0.0%
-69.12-427.57-1.1%

Economic occupancy
rate at the end of FP
Occupancy rate*1

38.30
0%

-177.30

97.5 %

8%

4%

1.6%

-200
-300

99.0%

4.2%

300

0

99.2%

5.4%

400

100

98.8%

92.6%

500

200

Economic
occupancy rate
for the 11th FP(forecast)

Surrender rate*2■Area contract start■Area contract end-74.57
-1.0%
-4%

-400

-6.6%

-500

Vacancy area at theend of FP*３ (tsubo)-8%

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP (forecast)

71.63

222.99372.73

76.23

69.12

Approx. 80*1 Occupancy rate: area contract start ÷ Total leasable area
*2 Surrender rate: area contract end ÷ Total leasable area
*3 Area for which the lease contract term has not started as of the end of each FP

11

Investment Status and Growth Strategy

Status of Office Tenant – Tenant Replacement & Contract Renewal –┃Status of tenant replacement and contract renewal┃ • Office properties (exc. obligated residences)
39.4 %(tsubo)
2,000
1,500
1,400

10.6 %

0%-0.9 %

0.4%

-1.5%

0.6 %
-15.3%

97.59-1.1 %

9.9 %-16.7%

76.23

1,107.07
170.81

-500
(600)

46.08
91.48

467.14231.580(100)344.48250.41■ Replacements with higher rent
■ Renewals with higher rent
■ Replacements with lower rent
■ Renewals with lower rent

0.3%

1,000
900
500
400

% change of rent uponrenewal*1% change of rent upon
replacement*2

23.04
76.23 228.69

38.3
72.26

10th FP

5th FP

6th FP

7th FP

8th FP

9th FPFor renewal (tsubo)

1,767.28

1,394.35

1,903.66

1,307.30

883.01

1,339.31

For new lease(tsubo)

97.59

25.94

271.88348.53

76.23

38.30

(forecast)Highlights for the 9th FP

Forecast for the 10th FP✔1 new lease(1 space with lower rent)✔14 renewals(1 space with higher rent and 3
spaces with lower rent)✔2 new leases(2 spaces with higher rent)✔19 renewals(1 space with higher rent and 0
space with lower rent)⇒Total percentage of change:-2.4%
Monthly rent decreased by 331
thousand yen⇒Total percentage of change:+0.6%Monthly rent increased by 131
thousand yen┃ Floor area scheduled for contract renewal ┃ • Office properties (exc. obligated residences)(tsubo)1 Rent gap: over 10％*３
3 Rent gap: over -10％ less than 0％2,500

1,923.13

2,000

1,339.31

1,500(19 spaces)(26 spaces)

1,032.21

2,617.25

Rent gap at the end of 9th FP
Unit rent for existing contracts*4:
16,282 yen/tsubo
Assumed new unit rent*4:
16,069 yen/tsubo(14 spaces)(25 spaces)

1,000

2 Rent gap: over 0％ less than 10％
4 Rent gap: -10％ or less

500
0

10th FP

11th FP

12th FP

13th FP*1: % change of rent upon renewal: (rent that includes CAM revenue after renewal – rent that includes CAM revenue before renewal) ÷ rent that includes CAM revenue before renewal*2: % change of rent upon replacement: (rent that includes CAM revenue after tenant replacement – rent that includes CAM revenue before tenant replacement) ÷ rent that includes CAM revenue before tenant replacement*3: Rent gap (contractual unit rent – assumed new unit rent) ÷ assumed new unit rent
*4: The various unit rents: using a monthly unit rent that includes CAM revenue.

12Investment Status and Growth Strategy

Trends in Office Market and Advantages of XYMAX REIT
The existing stock of small and medium-sized office buildings in the 23 wards of Tokyo is limited, and the supply volume of
new small and medium-sized offices is also limited.
Volume of new offices in Tokyo’s 23 wards in 2022
(net rental area)┃ Office Stock Pyramid 2022 covering the 23 wards (net rentable area) ┃(tsubo)23 Wards of Tokyo: 12.98 million tsubo, 9,378 buildings,
average building age: 32.9 years

Large‐scale office buildings(Gross floor area: 5,000 tsubo or more)
Whole: 6.91 million tsubo,
758 buildings, 24.9 years on average65

33.6 years on average

25
20
15

Less than 20 years:
1.03 million tsubo, (17%)

Building age (years)

30

Old seismic standard:
1.03 million tsubo,
(15%)

40

30

20

151,000

110,000

100,000

20 years or older:3.61 million tsubo, (52%)

112,000

142,000

115,000

175,000

26,000 26,000

37,0000

16,00080,00099,000102,000

41,000 35,000

110,000

80,000147,000

75,00058,000209,000

272,000

182,000

125,000
151,000

50,00065,00031,000 21,000
3,000

16,000 15,000 22,000

30,00013,0002011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

10

Less than 20 years:
3.30 million tsubo, (48%)

5

10168,000

118,000

Small and medium-sized office buildings are concentrated in the existing
stock of buildings that are 30 years or older.
Volume of the supply of new small and medium-sized offices is limited.

050

234,000

150,000

188,000

179,000
177,000

170,000

45

35

213,000

200,000

50

40

231,000

Total floor area 10,000
tsubo or more

55

20 years or older:
5.04 million tsubo, (83%)

152,000 tsubo

275,000

Total floor area 3000-9,999
tsubo

250,000

60

Old seismic standard:
1.45 million tsubo (24%)

178,000 tsubo
275,000

75
Small‐ and medium‐scale officebuildings (Gross floor area: 300‐5,000 tsubo) 70
Whole: 6.07 million tsubo, 8,620 buildings,

Average for2022-2025

Average for2012-2021

300,000

0

10

20

30

40

Rentable area (ten thousand tsubo).
Source: Survey Report by XYMAX Real Estate Institute Corp.
“[23 Wards of Tokyo] Office Stock Pyramid 2022”

50⇒ The average building age of the 10 office properties held by XYMAX REIT
Investment Corporation
years*

22.05*The weighted average of the building age of the 10 office properties calculated using total floorspace.

13

APPENDIX

Trends in Workplaces and Advantages of XYMAX REIT
┃Current workplace trends┃
Survey on Workstyles ×Offices
by XYMAX Real Estate Institute Distribution of percentages wishing to change
current office floorspace Relationship between the number of people per office andfloorspace Targeted office floorspace by type of employee and byindustry Sense of values regarding the location of the workplace Requirements for properties where the main office will belocated, etc.

Wishing to reduce: 19.2%

 Special Website: Workstyles x Offices

Wishing to expand: 15.9%

Diversification of workplaces triggered by the COVID-19
pandemic heightened the awareness of companies’
office strategies (the review of locations andworkstyles), but this situation remains fluid, and wewill need to continue gathering information.
All respondents (n=974)┃Advantages of XYMAX REIT┃
Knowledge andknow-how of
XYMAX Group Capturing trends on “how real estate, having various uses and locations is used” through the real estate management business Capturing trends of corporate office strategies through the ZXY business Researches and studies on real estate by XYMAX REAL ESTATE INSTITUTE Corporation

Real Estate Management Business

ZXY business(property management and building
management)

ZXY Totsuka

XYMAX REAL ESTATE INSTITUTE
Corporation

Entrusted Office Properties
Number of
offices entrusted 601 buildings
Gross floor area 1,590,000 tsubo

14

Investment Status and Growth Strategy

Current Status of Hotel Vista Sendai
Operating performance has recovered even further since April 2022, when movement restrictions were alleviated.
┃ Lease conditions and variable rent ┃ From the 10th FP, the calculation method for variable rent will change. Although variable rent in the 10th FP will decrease compared with the 9th FP, it isexpected to gradually increase from the 11th FP.
Fixed rent

Variable rent

8th FP, 9th FP

20 million yen/month(GOP for the current month – 21 million yen) × α%*

10th FP or after

20.5 million yen/month(GOP for the past 1 year/12 – 21.5 million yen) × α%** 0 yen, If the results of the calculation are negative For the year covering the 10th FP and 11th FP, variable rent has been estimated assuming approx. 10% decrease in sales and approx. 3% increase in expenses
compared with 2019 (pre-COVID-19).

9th FP result

25.0 million yen

2.3 million yen

10th FP forecast(Reference) Actual variable rents┃Trends of RevPAR┃(yen)Semi-state of emergency measures
BeforeCOVID-19

8,240

After
COVID-19

7,445State ofemergency
declaration

State ofemergency
declaration

4,130

3,185

3rd FP: 43.9 million yen, 4th FP: 41.2 million yen

State ofemergency
declaration

RevPAR(Actual result from April
2022 to September 2022)

7,637yen

7,530 7,483 7,190 7,512

4,666 4,504
3,538

12.0 million yen

Semi-state of emergency
measures

5,711
4,104

11th FP forecast

5,399

8,259

7,837

5,943 6,256
4,896

4,595
3,669

3,570

2,024

3rd FP
Mar.- Aug.
2019

4th FP
Sept. 2019 –Feb. 2020

5th FP
Mar.- Aug.
2020

6th FP
Sept. 2020 –Feb. 2021

2021年

Mar.

Apr.

May

June

July

2022年

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Period of GOP used to calculate variable rents: For September 2022

Sept.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Impacted by operating results prior to the real recovery

15

Investment Status and the Growth Strategy

Portfolio Status: Retail Properties
The impact of COVID-19 has been minimal, and we have been enjoying stable rent revenue based on fixed-rent contracts.
 All retail properties owned by XYMAX REIT are located in the suburbs of large metropolitan areas, where robust business conditions
are expected for tenants.
 Most of the tenants leasing the master lease properties are daily use type of business with steady sales.
 Multi-tenant retail properties achieved internal growth by utilizing expertise and know-how of the XYMAX Group.
 Tenant replacements (2 spaces) were realized with no downtime at +15% rent of the previous tenants, which occurred in the 9th FP.

 In conjunction with changes in how retail facilities are used, we intend to maintain and improve asset value in leasing by considering
a wide array of industries beyond the existing industries.

┃ Properties of XYMAX REIT ┃Fukuizumi

Breakdown of properties
by type(Based on rent revenue) Internal growth driven by replacement and rent
revision:
Monthly rent: +2.86 million yen

Totsuka300

Master leaseproperties

Muza

66%

Leased area (tsubo)■Increase in monthly rent
■Decrease in monthly rent

+231

250

34%

+66

+286

-23

500
400

150

300

100

200
100
+12

412.60120.00113.01

23.23

0.00

0.00

13th FP

14th FP00
2nd FP

Kachigawa

600

200

50

Seiseki‐Sakuragaoka

 Termination date of lease term (based oncontracted leased area)
Average remaining lease period: 6.3 years(*Total leased floor area: 1,381.03 tsubo)(ten thousand yen)

Multi-tenant
properties

Kawasaki
Miyuki

Status of multi‐tenant retail properties

4th FP

6th FP

9th FP

Total through9th FP

Endingpoint

10th FP

11th FP

12th FP

15th FP

16

Investment Status and the Growth Strategy

External Growth – Continue to implement measures for external growth–
XYMAX REIT will continue to focus on asset type and consider acquisition of properties in accordance with the portfolio strategy.
We will continue our sourcing activities to determine the fundamental value of the target properties, with an awareness of the balance
between DPU growth and financial soundness.

┃ Unrealized gain by property owned by XYMAX REIT┃┃ Acquisition policy ┃At the end of 9th FP

 We intend to build new property pipelines by selecting prime properties
from the rich property information gained from the sponsor network andcarefully examining them at the Asset Management Company.
7th FP

8th FP

9th FP

Number of pieces of informationacquired from sponsor group

807

767

765

Number of properties underconsideration by XYMAX REIT

20

28

26

┃LTV┃At the end of 9th FP
LTV levelvs. total assets

Possible loan amount45%

Approx.
3.5 billion yen

37.5%

50%

Approx.
8.7 billion yen

42.3%

Core regional city

Core regional city

RetailShinjuku‐Gyoen
2,269(9,088 yen)Total
unrealized gain

10,476
million yen

Appraisal LTV┃ Properties under consideration ┃8 central wards of Tokyo

Others87
Sendai951
Other(3,809 yen)retail384
Seiseki‐
Other
Sakuragaoka
Hotel474(1,898 yen)
Muza
1,491
(5,972 yen)

LTV based on total assets: 41.0%, Appraisal LTV 33.7%

Location As for the return of unrealized gain on properties, which is one of
the XYMAX REIT characteristics, XYMAX REIT will consider the
return by asset replacements, etc. as one of the asset strategies.

OfficeOther office
680 Kamiyacho

Iwamotocho
1,499(6,004 yen)

400
Hachioji(1,602 yen) Nishi-Shimbashi 993
Higashi-Ueno 746(3,977 yen)
(2,988 yen)493
(1,974 yen)(unit: million yen)
*The amounts in parentheses are
Unrealized gains per unit for each property.

Asset type

SourceOfficeCRE client of the XYMAX
Group

Reconstruction needs of CRE clients
Offices located in favorable locations near train and subway stations, where highdemand is expected from tenants

CRE client of the XYMAXGroup

A retail development project in a location that is highly desired by CRE clients for
opening stores
Tenants are expected to include daily necessities selling tenants with strong sales

Private fund managed by
the XYMAX Group

Located in a regional economic hub and also with a high level of tourism resources,
there is solid demand for accommodation(planned)

Retail properties(planned)

Hotel(specialized in stay)

Focused point

17

Investment Status and the Growth Strategy

Financial Status at the end of 9th FP
XYMAX REIT establishes a financial base that puts emphasis on stability and soundness in financing, mainly composed of
megabanks and regional banks, etc., that have financial business relationships with the sponsor group.
We have also acquired the issuer rating of A- from R&I in the 9th FP.
┃Credit ratings┃┃Borrowing status┃
 On June 27, 2022, we obtained an issuer rating from R&I

RatingRatingOutlooks⁻ＡMore reference(Japanese version only)

StableBalance ofinterest‐bearing
debts

19.94 billion yen

Fixed interest rate
ratio

96.5%

Average remaining
period2 years
5 months

Long‐term loan
ratio

98.3 %

Average interest
rate

0.632%

LTV based on total
assets41.0%┃ Lender formation ┃┃ Maturity ladder┃

At the end of 8th FP(million yen)

4,856

5,000
4,376
4,000

4,302
1,400

950

1,400

3,141
3,000

Borrowed during 9th FP

3,270

345

1,250

2,000

3,426

2,796

3,456

2,902

1,000

2,020

0
10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

17th FP

18th FP

Number offinancial
institutions

16 companies

Mizuho Bank

24.8%

SMBC

18.3%

MUFG Bank

12.3%

Resona Bank

7.5%

Aozora Bank

6.5%

Nishi-Nippon CB

5.0%

Fukuoka Bank

5.0%

Yokohama Bank

4.0%

Hiroshima Bank

3.5%

Nanto Bank

3.0%

Shinsei Bank

2.9%

Higo Bank

2.5%

Chiba Bank

1.5%

Fukoku-life

1.5%

Kansai Mirai Bank

1.1%

Mizuho Trust & Banking 0.5%18Investment Status and the Growth Strategy

Future Management Policy
We will pursue further improvement in unitholder value through realizing timely external growth, in addition to thecontinued internal growth since listing.

Current status
Advantage and characteristics

Financial and ESG

Asset management using our “three strengths”
 Assessment: Estimating the targeted real estate’s potential
 Management: Maximizing the targeted real estate’s potential
 Sourcing: Exclusive transactions utilizing the customer base of the sponsor group External rating: A- (R&I)
 Financial soundness of 33.7% appraisal LTV
 GRESB 3 Star, 52.5% environmental certification acquisition rate(based on total floor area)

Future growth drivers
Internal growth

External growth Offices/retail properties: Maintain occupancy rates
and secure stable revenue through cost management Hotels: Raise variable rent in conjunction with therecovery of sales

 Improve the pipeline using our strengths in sourcing
 Continue to consider the return of unrealized gain
through property sales and asset replacement
 Stabilize management by increasing the scale of ourassets

33.0

34.1

35.3

billionyenbillionyenbillionyen

IPO
Feb. 2018

Acquisition
Fukuizumi
Sept. 2020

Acquisition
Mita and Totsuka
July 2021

37.2
billionyen

Replacement
Chihaya, Kachigawa
January 2022

43.4
billionyen

Financial and ESG
 Diversify financing methods, such as investment
corporation bonds and ESG financing
 Improve disclosures and deepen ESG activities
through the identification of key issues

Aiming to growfaster than everbeforeFurthergrowth

1st Public offering
March 2022

19

ESG

ESG

TOPICS for the 9th FP
Participated in the GRESB Assessment for the first time
Participated for the first time in the GRESB Assessment, yearly benchmarks forenvironmental, social, and governance (ESG) performance in the real estate
sector from FY2022.

Real estate assessment: 3 Star and Green Star
Public disclosure: A Level

Acquisition of Environmental Certification
Acquired environmental certification for three properties during the 9th FP┃ CASBEE－Real estate ┃┃ BELS ┃┃ Acquisition status ┃(At the end of 9th FP)

XYMAX Kiba koen
Building

Assessment Rank

Rank S(Excellent)

Life
Kawasaki Miyuki StoreXYMAX Sapporo Odori
Building

Assessment Rank

4 StarNumber of
Acquisition ofEnvironmental
Certification
Acquisition rate(based on total
floor area)

10
properties

52.5 %21

ESG

ESG Initiatives (1)Results of environmental initiatives┃ Water use intensity (m3/ m2)┃

┃GHG emissions intensity (kg-CO2/m2)┃
100

1.46

1.50
76.5

80

71.7

Adoption ofrenewable energy

62.9

72.6

60
40

1.04

0.67

0.68

0.63
0.49

0.60

20

1.44

1.26

1.20
0.90

35.2

1.39

0.39

0.30

0

FY 2018(base year)

FY 2019

FY 2020

FY 2021

FY 2023(tareget year)■Scope1+2

Improvement of environmental performance through building/equipment renovation
 Major facility renovation in the 9th FP

Shinjuku‐Gyoen Renewal for air conditioning system in exclusive
space (1 floor)
Iwamotocho
Shinjuku‐Gyoen

FY 2018(base year)

FY 2019

FY 2020

Owner management area

Initiatives for Reducing Environmental Burden

Renewal for air conditioning system in common
Nishi‐Shimbashi area

0.00

approx. 55% Reduction in energy consumption

FY 2021

FY2023(target year)

Tenant management area

Adoption of electricity generated from 100%
renewable energy sources Switching to 100% renewable energy sources completed ateight office properties

Targeted electricity
consumption

1.77 million kWh(based on the 9th FP)

approx. 57% Reduction in energy consumption

LED replacement in exclusive spaces(4 floors)

approx. 52% Reduction in energy consumption┃ Future initiatives┃

Renewal of men's urinais (1 floor)

approx. 73% Reduction in energy consumption

 Promote environmental load reduction work for air
conditioning renewal and replacement to LED
 Introduce more environmentally friendly models when
updating equipment
 Aiming to improve the environmental performance ofproperties through a collaborative effort with tenants, XYMAXREIT is promoting green leases and updating equipment

LED replacement(Iwamotocho)

Renewal for air
conditioning system(Shinjuku-Gyoen)

Renewal of men's restroom
facilities (Shinjuku-Gyoen)

22

ESG

ESG Initiatives (2)Initiatives for a Sustainable Society
Signing of Principles for Financial Action for the 21stCentury by Ministry of the Environment XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation, AssetManagement Company of XYMAX REIT, has endorsed the ideas of the
Principles and became a signatory on December 27, 2013.

Initiatives for Tenants and Local Communities┃ Resilience measures for disasters, etc. ┃┃ Operation to prevent the spread of COVID-19 ┃ Introductionof emergency
storage boxes

 Replacing conventional toilet faucets with automatic faucets
 Thoroughly implementing COVID-19 countermeasuresamong the management and cleaning staff (wearing facemasks, washing hands, disinfecting, gargling, etc.)
 Introducing alcohol-based disinfectants (common area)
 Introducing foot pedal alcohol stands

 Introduced disaster‐relief
vending machines┃ Initiatives to improve tenant satisfaction ┃ Implementation ofrenewal work incommon areas (Kiba)

beforeafter Introduction of digital
signage in common
area

23

ESG

ESG Initiatives (3)Initiatives of Asset Management Company┃Qualification support system ┃┃Respect for diversity┃

 Asset Management Company introduced a system to provide incentives for
employees who acquire certain qualifications.
 Status of qualification (incl. those unregistered) by employees of Asset Management
Company (as of October 1, 2022)

 More than half of our executives and employees are female, and female
employees are succeeding in a wide range of fields, regardless of being in thefront, middle, or back office.

• Licensed Real Estate Broker• ARES Certified Master• Certified Building Administrator

Number of executives and employees(excluding dispatched employees)

2286┃Flextime system and diversification of working places┃ Asset Management Company introduced a flextime system to support a more flexible
workstyle in line with the degree of activity.
 With the option of working at the head office and working at home, we are able to balanceboth business continuity and infection control.

Maternity or
child care leave

Male

Female(Percentage
of female)

Total

April 2020

13

23

63.9%

36

1

April 2021

15

19

55.9%

34

1

October 2022

15

18

54.5%

33

0

ESG initiatives at Sponsor Group Support for corporate workstyle reforms by offering satellite office services throughsuch services provided by ZXY

 Serving as lecturer of ARES Real Estate Securitization Master training course Contribution to the environment and the local communities through real estate
management services

 Granting of scholarships to Yangon Technological University students

 Nurturing real estate business personnel through Karakusa Fudosanjuku (real estatebusiness seminar ) at Sponsor Group Promoting diversification of working places and hours
 Accepting technical trainees from overseas
 Supporting for the development of young athletes

 Activities in organizations such as Japan Facility Management Association (JFMA) andJapan Sustainable Building Consortium Contributing to ARES Real Estate Securitization Journal

24

ESG

ESG Initiatives (4) XYMAX REIT adopts a decision-making flow via committees
in which external committee members participate inmatters that significantly impact unitholders’ interests with
the intention of protecting unitholders’ interests.
 At the REIT Compliance Committee and REIT Investment
Committee, the attendance and approval of complianceofficers and external committee members are
requirements for resolutions. Accordingly, a governancesystem has been established to prevent arbitrary
management by the Asset Management Company.

Asset management fee system

Proposal by division(s) in charge

Examination by compliance officer
Disapprove

Matters other than the flow of the right, etc.

Matters for deliberation by REIT Compliance
Committee
Deliberation and resolution by REIT Compliance
Committee(vote in favor requires attendance and assent of external
committee members and Compliance Officer)

Vote
down

Set as agenda of REIT Investment Committee

ReturnDecision-making Flow at AssetManagement Company

Fees for a fiscal period
Total asset-linked Fee

Total assets × 0.2% per annum

Deliberation and resolution by REIT Investment Committee(Attendance and approval by external committee members and Compliance Officer are imperative for approval)

NOI × 4.0% per annum

NOI linked Fee

Vote
down

Acquisition and disposition fees
Acquisition Fee

Acquisition price × 1.0%*1

Disposition Fee

Gain on dispositions at the end of each period (after
deduction of loss on dispositions) × 15.0% *2

Matters other than the flow of the right, etc.

Related-party transactions
Establishment of management guidelines
Issuance of investment units of above a certain
amountOther changes in important matters

Report to Board of Directors

Deliberation and resolution by Board of Directors*1 0.5%, in the case of acquisition from interested parties*2 0 yen, if the gains on disposition amount is negative

Investment Ratio in
XYMAX REIT by Sponsor

5.0%(at the end of 9th FP)

Vote
down

Along with the above, related-party transactions, establishment of management guidelines, issuance ofinvestment units of or above a certain amount and other changes in important matters shall be subject to theapproval of XYMAX REIT’s Board of Directors prior to the transaction, and other matters shall be reported to
XYMAX REIT’s Board of Directors.

25

APPENDIXAPPENDIX

Characteristics of XYMAX REITXYMAX REIT realize the full potential of owned properties and maximize the unitholders’ value through relevant portfolio management
utilizing expertise and know-how accumulated in and by the XYMAX Group, the sponsor.

Characteristics of XYMAX Group Japan’s prominent real estate management record
 Real estate management record: 1,070buildings/Gross floor area Approx. 5.80 million tsubo (as of July 31, 2022)
 Entrustment records by J-REIT investment corporation other than XYMAX REIT: 27 companies/190 properties (as of July 31, 2022)
 Human resources: 2,299 people engaged in real estate management, 56 people in leasing, and 64 people in CRE related business (as of
October 1, 2022)
 Real estate management utilizing accumulated various data & development of new businesses applying expertise and know-how
 Data of Real Estate Management: Contracted rent data 40,807 buildings/134,677 cases (accumulated total as of March 31, 2022),
Asking rent data 58,619 buildings (accumulated total as of March 31, 2022)/19,239 cases (as of March 31, 2022), Construction work
data 163,895 cases (accumulated total as of February 28, 2022)
 Membership satellite office business ZXY and expanding own hotel brand, karaksa hotels.

 Track record in real estate sales and brokerage utilizing huge customer base
 Relationship with real estate owners: approximately 370 companies (as of July 31, 2022)
 Track record in property sales and brokerage: 374 buildings, approximately 588.8 billion yen(accumulated total from April 1, 2010 to March 31, 2022)

Utilizing XYMAX Group’s expertise and know-how as “3 Strength”

Assessment

Management

Sourcing

27

APPENDIX

The source of power to maximize unitholder value;XYMAX REIT's “3 strengths”
XYMAX REIT will maximize unitholder value by utilizing the three real estate management strengths of its sponsor, the
XYMAX Group.

“3 strengths” of XYMAX REIT

Assessment

 Through combining our knowledge gained through real estate management experiencethroughout Japan and an analysis of a huge amount of unique real estate data held by thesponsor group, we will accurately determine the market positioning of a target property,
upon estimating the appropriate level of rent and management costs for such property.

Management

 Through daily unfettered discussion, we will perform management which directly utilizes
various expertise of the sponsor group as well as input from the frontline. With close
communication with the frontline enabling quick decisions, we will maximize property
potentials, together with ensuring opportunities for internal growth.
 Utilizing the sponsor group’s direct communication with real estate owners, we will seize
property acquisition opportunities in exclusive transactions for sure.

Sourcing

 Utilizing the real estate buying and selling needs of the customer base of the CRE service
provided by the sponsor group, we will create property acquisition opportunities in
exclusive transactions.
28

APPENDIX

Balance Sheet and Statement of Income(Unit: thousand yen)

Balance Sheet

8th fiscal period(As of Feb. 28, 2022)

9th fiscal period(As of Aug. 31, 2022)

AssetsCurrent assets
Cash and bank deposits
Cash and bank deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes refund receivable
Other
Non‐current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
Tools, furniture and fixtures
Land
Buildings in trust
Structures in trust
Machinery and equipment in trust
Tools, furniture and fixtures in trust
Land in trust
Construction in progress in trust
Investments and other assets
Long‐term prepaid expenses
Deferred tax assets
Lease and guarantee deposits
Other
Deferred assets
Investment unit issuance costs
Total assets
Liabilities
Current liabilities
Operating accounts payable
Short‐term loans payable
Current portion of long-term borrowings
Accounts payable ‐ other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Non‐current liabilities
Long‐term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Derivatives liabilities

Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Valuation and translation adjustments
Deferred gains or losses on hedges
Total net assets
Total liabilities and net assets

3,367,159
1,219,048
2,080,797
19,412
41,776
6,124
37,882,156
37,746,444
304,181
1,768
10,38918,151
229,752
8,357,255
58,118-4,309,869
1,540,074
2,523,504
37,046
46,125
162,235
882
44,337,396
44,189,725
303,653
1,733
10,187
14,947230,346
9,888,545
53,393028,745,430
135,71154,09813
22,60058,99941,249,315

33,661,874
33
147,670
56,13315
22,60068,921
22,494
22,494
48,669,759

4,544,914
90,854
1,100,000
2,796,000
209,246876
142,898
202,992
2,045
13,248,202
11,804,000
33,3491,410,853
17,793,116

3,690,587
139,620
345,000
2,796,000
155,651922
247,938
5,454
18,538,775
16,804,000
33,3491,698,290
3,135
22,229,363

23,456,198
22,585,746
870,452
23,456,198
41,249,315

26,443,532
25,440,013
1,003,518-3,135-3,13526,440,396
48,669,759(Unit: thousand yen)

Statement of Income
Operating revenue
Leasing business revenue
Other leasing business revenue
Gain on sale of real estate property
Operating expenses
Expenses related to leasing business
Asset management fees
Asset custody fees
Administrative service fees
Directors’ compensations
Other operating expenses

Operating income
Non‐operating income
Interest income
Interest on refund
Gain on forfeiture of unclaimed
distributions
Non‐operating expenses
Interest expenses
Borrowing related expenses
Amortization of investment unit issuancecosts
Ordinary income
Income before income taxes
Total income taxes
Income taxes ‐ current
Income taxes ‐ deferred

Net income
Retained earnings brought forward
Unappropriated retained earnings(undisposed loss)

8th fiscal period(As of Feb. 28, 2022)

9th fiscal period(As of Aug. 31, 2022)

1,611,865
1,289,778
102,432
219,655
664,965
490,977
113,258
1,056
11,4372,400
45,834
946,900
136
14
65

1,874,817
1,523,202
125,327
226,287
752,828
557,144
125,416
1,108
12,5492,400
54,2101,121,988
129
20
-

56

108

75,79742,79133,006

117,761
63,45749,879-4,425

871,239871,239879
878
0870,360
92

1,004,355
1,004,355
923
925
-2
1,003,432
86

870,452

1,003,518

29

APPENDIX

Portfolio List (1)Asset no.

OF-01

OF-02

OF-03

OF-04

OF-05

OF-06

Asset type

OfficeOfficeOfficeOfficeOfficeOfficeProperty nameXYMAX Nishi-Shimbashi
Building

XYMAX Iwamotocho Building

XYMAX Shinjuku-Gyoen
Building

XYMAX Kamiyacho Building

XYMAX Higashi-Azabu Building

XYMAX Higashi-Ueno Building

Location

Minato-ku, Tokyo

Chiyoda-ku, Tokyo

Shinjuku-ku, Tokyo

Minato-ku, Tokyo

Minato-ku, Tokyo

Taito-ku, Tokyo

3 minutes on foot from
Iwamoto-cho Station on the
Toei Subway Shinjuku Line

2 minutes on foot from
Shinjuku Gyoenmae Station on
the Tokyo Metro MarunouchiLine

1 minute on foot from
Kamiyacho Station on theTokyo Metro Hibiya Line

5 minutes on foot from
Akabanebashi Station on the
Toei Subway Oedo Line

3 minutes on foot from NakaOkachimachi Station Tokyo
Metro Hibiya Line

7 minutes on foot from
Kamiyacho Station on theTokyo Metro Hibiya Line

4 minutes on foot from JR
Okachimachi Station, andother

3 minutes on foot from
Uchisaiwaicho Station on the
Toei Subway Mita Line
Access6 minutes on foot from
Shimbashi Station on the JRTokyo Metro Ginza Line , andother

Acquisition price(million yen)

2,500

4,250

5,020

880

1,550

1,150

Land area

402.53㎡

864.83㎡

839.09㎡

228.83㎡

365.05㎡

368.84㎡

Total floor area

2,517.50㎡

6,261.06㎡

6,084.32㎡

1,356.51㎡

2,570.13㎡

1,942.54㎡

Leasable area

1,897.92㎡

4,152.40㎡

4,792.21㎡

1,205.27㎡

2,015.99㎡

1,735.29㎡

Completion

2000

2001

2001

1991

1999

1999

Structure/Number of
FloorsReinforced concrete structurewith flat roof 9F

Steel-framed reinforced
concrete structure with flat
roof B1F/9F

Steel-construction /Reinforced concrete structurewith flat roof B1F/9F

Steel-construction with flat
roof 8F

Steel-framed reinforced
concrete structure with flat
roof B1F/9F

Steel-framed reinforced
concrete structure with flat
roof 8F

Number of tenant(As of the end of 9th FP)

8

14

6

7

6

8

Occupancy rate
(As of the end of 9th FP)

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

30

APPENDIX

Portfolio List (2)Asset no.

OF-07

OF-08

OF-09

OF-10

RT-01

RT-02

Asset type

OfficeOfficeOfficeOfficeRetailRetailProperty nameXYMAX Hachioji Building

XYMAX Mita Building

XYMAX Sapporo Odori Building

XYMAX Kiba koen Building

Muza Kawasaki

Life Kawasaki Miyuki Store

Location

Hachioji-shi, Tokyo

Minato-ku, Tokyo

Sapporo-shi, Hokkaido

Koto-ku, Tokyo

Kawasaki-shi, Kanagawa

Kawasaki-shi, Kanagawa

Access4 minutes on foot from Keio
Hachioji Station on the Keio
Electric Railway Keio Line

5 minutes on foot from
Mita Station on the Toei
Subway Mita Line, and other5 minutes on foot from JR
Hachioji Station

1 minute on foot from Kiba
Station on the Tokyo Metro
Tozai Line

JR Kawasaki Station
Directly Connected

7 minutes on foot fromJR Tamachi Station

1 minute on foot from Odori
Station on the Sapporo City
Subway, Namboku Line, Tozai
Line, and Touhou Line

15 minutes on foot from JR
Kashimada Station and Yako
StationAcquisition price(million yen)

2,600

668

4,707

2,003

4,100

790

Land area

1,220.58㎡

137.02㎡

499.24㎡

851.46㎡

10,669.34㎡ *1

1,879.15㎡

Total floor area

7,404.81㎡

799.78㎡

4,270.89㎡

2,995.81㎡

108,955.90㎡ *1

2,596.80㎡

Leasable area

5,556.05㎡

741.41㎡

3,106.42㎡

2,587.13㎡

3,703.88㎡

2,677.54㎡

Completion

1993

1991

2020

1992

2003

1997

Structure/Number of
FloorsSteel-framed reinforced
concrete/ Steel-construction
with flat roof B1F/9F

Steel-construction with flat
roof 10F

Steel-construction with flat
roof B1F/10F

Reinforced concrete structurewith flat roof 6F

Steel-framed/Steel-framed
reinforced concrete structurewith flat roof/stainless steel
plate roofing B2F/27F

Steel-construction with flat
roof 2F

Number of tenant(As of the end of 9th FP)

23

7

6

5

19

1

Occupancy rate
(As of the end of 9th FP)

100.0%

69.2%

100.0%

100.0%

100.0%

100.0%*1: Both land area and total floor area above represent land area and total floor area of one building, respectively.

31

APPENDIX

Portfolio List (3)Asset no.

RT-03

RT-04

RT-05

RT-06

HT-01

OT-02

Asset type

RetailRetailRetailRetailHotel

Other (Residential)

Property name

Vita Seiseki-Sakuragaoka

Life Fukuizumi StoreThe Park House Totsuka Front(the Retail Portions of 1st and2nd Floors)

Valor Kachigawa Store(Leasehold land)

Hotel Vista Sendai

L-Place Nishikasai

Location

Tama-shi, Tokyo

Sakai-shi, Osaka

Yokohama-shi, Kanagawa

Kasugai-shi, Aichi

Sendai-shi, Miyagi

Edogawa-ku, Tokyo

AccessKeio Electric Railway Keio Line
Seiseki Sakuragaoka Station
Directly Connected

12 minutes on foot from Otori
Station on the JR Hanwa Line

3 minutes on foot from
JR and Yokohama shiei Subway
Blue Line Totsuka Station

7 minutes on foot from
Kachigawa Station on the JR
Chuo Main Line

Acquisition price(million yen)

3,100

1,065

540

3,245

4,400

901

Land area

9,003.26㎡ *1

6,225.21㎡

1,595.49㎡ *1

20,509.10㎡*1

1,461.36㎡ *3

854.00㎡

Total floor area

62,849.56㎡ *1

3,358.26㎡

12,236.50㎡ *1-

6,977.47㎡

2,044.18㎡

7,066.25㎡

2,044.18㎡

4 minutes on foot from JR
Sendai Station
1 minute on foot from
Miyagino Dori Station on the
Sendai City Subway Tozai Line

5 minutes on foot from
Nishikasai Station on the Tokyo
Metro Tozai Line

Leasable area

27,610.61㎡

3,309.29㎡

861.60㎡

10,254.55㎡*2

Completion

1999

1996

2018

-

2016

1986

Structure/Number of
FloorsSteel-framed reinforced
concrete structure/reinforced
concrete structure/steelconstruction withflat roof B3F/27F

Steel-construction with flat
roof 2F

Reinforced concrete structurewith flat roof B1F/14F-

Steel-construction with flat
roof 12F

Reinforced concrete structurewith flat roof 5F

Number of tenant(As of the end of 9th FP)

1

1

5

1

1

1

Occupancy rate
(As of the end of 9th FP)

100.0%

100.0%

100.0％

100.0％

100.0%

100.0%*1: Both land area and total floor area above represent land area and total floor area of one building, respectively.
*2: The figures are calculated by multiplying the leased floor area under the lease contract by the quasi co-ownership ratio of the beneficiary rights held by the XYMAX REIT (50%).
*3: 1,461.36 m2 includes surface rights of 524.21 m2.

32

APPENDIX

Portfolio Map┃ Country wide area┃┃ 23 wards of Tokyo ┃33

APPENDIX

Characteristic of current office tenants┃ Office tenant diversification <based on rent revenue> (excluding obligated residences) (80 office tenants) ┃At the end of 9th FP
Based on business type

Leased area based top tenants ratio
Wholesale

27.5%

Other service

24.9%

10.99%

19.3%

Manufacturing
IT

9.3%

Medical and Welfare

4.4%

3.9%

Real estate

2.1%

Bank business

2.1%

Retail

1.5%

Restaurants

0.7%

Top 10All tenants:

11th - 30th

10 years, 11 months
Top ten tenants by leased area:
12 years, 8 months

31st - 50th

15.16%

51st - 67th

48.85%

Lawyers and Accountants 4.3%
Construction business

Average tenant lease period of
offices owned by XYMAX REIT

Average tenant lease period
of office buildings

25.00％

9.6 years*1*1

Source: “Analysis of Lease Periods of Office Tenants in the 23 Wards ofTokyo (2018)” by XYMAX Real Estate Institute┃ Average Occupancy Rate of office (including obligated residences )┃
100%

99.5%

100.0%
99.2%

100.0%
98.3%

98.3%

97.9%

97.6%

98%
98.1%

96.6%

97.7%

98.7%

96.7%

96.6%

96.1%

88%

93.1%

93.0%

Occupancy rate of office properties owned by XYMAX REIT

The Global Financial
Crisis2008/02

96.8%

IPO

94.6%

2007/02

96.5%

99.0%

96.0％

95.3%

94%

90%

98.6%

95.9%

95.8%

92%

98.8%

98.1%

97.6%

97.5%

96%

99.2％

99.1%

98.9%

91.6%

2009/02

2010/02

2011/02

Average occupancy rate of J-REIT offices

2012/022013/02

2014/02

2015/02

2016/022017/022018/02

2019/022020/022021/022022/022022/07

34

APPENDIX

Operating Income (Loss) from Real Estate Leasing by Asset(1/2)(Unit: thousand yen)

NishiShimbashi

Iwamotocho

ShinjukuGyoen

Kamiyacho

Operating revenue fromreal estate leasing

84,816

139,164

188,847

45,43754,15950,520131,199

20,831

132,946

60,014

Lease business revenue

76,160122,126

175,296

38,73247,51643,515

114,821

17,317

123,888

52,437

Other lease businessrevenue

8,655

17,037

13,551

6,705

6,643

7,005

16,377

3,514

9,057

7,576

Operating expenses from realestate leasing(Excluding Depreciation)

21,56842,04442,984

15,27517,026

14,51145,008

11,162

16,711

13,483

Tax and public dues

7,220

13,722

14,707

4,778

6,646

3,801

8,390

1,345

8

55

Maintenance fees

5,508

9,478

11,660

4,633

5,753

4,361

15,575

2,700

7,671

6,741

Utility expenses

6,303

9,399

10,486

3,241

3,314

4,265

9,032

848

7,633

5,767

Repair expenses

1,961

6,171

4,838

41

604

1,411

9,815

4,405

255

261

Insurance premiums

61

219

210

46

81

59

273

37

303

111

Other expenses related
to leasing business

513

3,052

1,080

2,533

625

612

1,921

1,825

840

546

63,247

97,119145,862

30,162

37,13236,00886,1909,669

116,235

46,531

Depreciation

2,885

16,956

12,197

1,457

6,002

3,293

11,362

1,203

22,7105,099

Operating income (loss)
from real estate leasing

60,36180,163

133,664

28,705

31,13032,71574,828

8,466

93,524

41,431ＮＯＩ

HigashiAzabu

HigashiUeno

Hachioji

Sapporo

Mita

Kiba

35

APPENDIX

Operating Income (Loss) from Real Estate Leasing by Asset (2/2)(Unit: thousand yen)

Muza

Kawasaki
MiyukiSeisekiSakuragaoka

Fukuizumi

Operating revenue fromreal estate leasing

177,129

undisclosed

undisclosed

undisclosed

Lease business revenue

155,294

undisclosed

undisclosed

Other lease businessrevenue

21,835undisclosed

Operating expenses fromreal estate leasing(Excluding
Depreciation)

45,482

Tax and public dues

Kachigawa

Sendai

Nishikasai

Total*

26,476undisclosed

undisclosed

undisclosed

1,648,530

undisclosed

23,214

undisclosed

undisclosed

undisclosed

1,523,202

undisclosed

undisclosed

3,261

undisclosed

undisclosed

undisclosed

125,327

undisclosed

undisclosed

undisclosed

9,977

undisclosed

undisclosed

undisclosed

398,257

10,873undisclosed

undisclosed

undisclosed

1,839

undisclosed

undisclosed

undisclosed

136,136

Maintenance fees

14,952undisclosed

undisclosed

undisclosed

5,078

undisclosed

undisclosed

undisclosed

107,084

Utility expenses

18,817undisclosed

undisclosed

undisclosed

2,960

undisclosed

undisclosed

undisclosed

83,115

Repair expenses

120

undisclosed

undisclosed

undisclosed-

undisclosed

undisclosed

undisclosed

44,748Insurance premiums

189

undisclosed

undisclosed

undisclosed

52

undisclosed

undisclosed

undisclosed

3,987

Other expenses related
to leasing business

528

undisclosed

undisclosed

undisclosed

45

undisclosed

undisclosed

undisclosed

23,184

131,647

22,577

166,275

22,902

16,49968,901

122,702

25,0071,250,272

Depreciation

18,032

1,654

24,529

2,223

3,767

-

21,3672,450

158,887

Operating income (loss)
from real estate leasing

113,615

20,923

141,745

20,67912,731

68,901

101,334

22,557

1,091,385

ＮＯＩ

Totsuka*Portfolio “Total” includes Renaissance Chihaya of which disposition was completed in 9th FP.

36

APPENDIX

Overview of Appraisal Report
Asset
no

Asset nameAcquisitiondate

Acquisition price Book value as ofthe end of 9th FY(million yen)(million yen)

End of 8th FY(February 28, 2022)

End of 9th FY(August 31, 2022)

Capitalization rate
Appraisal
based on direct
capitalization
value (million yen)method (%)

Capitalization rate
Appraisal
based on direct
capitalization
value (million yen)method (%)

ChangeCapitalization rate
based on direct
capitalization
method *2 (%)

Appraisalvalue *1
(million yen)Appraiser

Unrealized profit
or loss *3(million yen)

OF-01

XYMAX Nishi-Shimbashi Building

February 2018

2,500

2,523

3,290

3.5

3,270

3.4

-20

-0.1 Appraisal Co., Ltd.

The Tanizawa Sōgō

746

OF-02

XYMAX Iwamotocho Building

February 2018

4,250

4,420

5,930

3.4

5,920

3.3

-10

-0.1 InstituteJapan Real Estate

1,499

OF-03

XYMAX Shinjuku-Gyoen Building

February 2018

5,020

5,070

7,600

3.4

7,340

3.3

-260

-0.1 InstituteJapan Real Estate

2,269

OF-04

XYMAX Kamiyacho Building

February 2018

880

889

1,270

3.6

1,290

3.5

20

-0.1 Appraisal Co., Ltd.

The Tanizawa Sōgō

400

OF-05

XYMAX Higashi-Azabu Building

February 2018

1,550

1,597

1,990

3.8

1,990

3.8

-

- Appraisal Co., Ltd.

Daiwa Real Estate

392

OF-06

XYMAX Higashi-Ueno Building

February 2018

1,150

1,166

1,660

3.9

1,660

3.9

-

- Appraisal Co., Ltd.

Daiwa Real Estate

493

OF-07

XYMAX Hachioji Building

February 2018

2,600

2,656

3,580

4.7

3,650

4.6

70

-0.1 InstituteJapan Real Estate

993

OF-08

XYMAX Mita Building

July 2021

668

684

736

3.8

755

3.7

19

-0.1 InstituteJapan Real Estate

70

OF-09

XYMAX Sapporo Odori Building

March 2022

4,707

4,755

-

-

4,920

3.9

-

- InstituteJapan Real Estate

164

OF-10

XYMAX Kiba koen Building

March 2022

2,003

2,095

-

-

2,150

4.3

-

- InstituteJapan Real Estate

54

RT-01

Muza Kawasaki

February 2018

4,100

4,048

5,480

4.1

5,540

4.1

60

- Appraisal Co., Ltd.

The Tanizawa Sōgō

1,491

RT-02

Life Kawasaki Miyuki Store

February 2018

790

792

978

4.2

970

4.2

-8

- Appraisal Co., Ltd.

Daiwa Real Estate

177

RT-03

Vita Seiseki-Sakuragaoka

February 2018

3,100

3,425

3,870

5.0

3,900

5.0

30

- Appraisal Co., Ltd.

The Tanizawa Sōgō

474

RT-04

Life Fukuizumi Store

September 2020

1,065

1,077

1,090

4.5

1,090

4.5

-

- Appraisal Co., Ltd.

Daiwa Real Estate

12

The Tanizawa Sōgō
Appraisal Co., Ltd.

85

RT-05

The Park House Totsuka Front (the RetailPortions of 1st and 2nd Floors)

July 2021

540

545

624

4.5

631

4.5

7

-

RT-06

Valor Kachigawa Store (Leasehold land)

January 2022

3,245

3,289

3,330

-

3,400

-

70

- Appraisal Co., Ltd.

The Tanizawa Sōgō

110

HT-01

Hotel Vista Sendai

February 2018

4,400

4,218

5,280

4.9

5,170

4.9

-110

- Appraisal Co., Ltd.

The Tanizawa Sōgō

951

OT-02

L-Place Nishikasai

March 2022

901

932

-

-

1,020

4.5

-

- Appraisal Co., Ltd.

The Tanizawa Sōgō87

43,46944,18946,708*4-

54,666-

7,958

Total / Average-*1: The difference between the estimated value at the end of the 8th FP and the estimated value at the end of the 9th FP is indicated.
*2: The difference between the direct capitalization rate adopted in the real estate appraisal report for each portfolio asset in the calculation of estimated value at the end of the 8th FP and the direct capitalization rate adopted in the real estate report for each portfolio asset in the calculation of estimated value at the end of the 9th FP is indicated.
*3: The difference between the estimated value at the end of the 9th FP and the book value at the end of the 9th FP is indicated.
*4: Renaissance 21 Chihaya, whose transfer was completed in the 9th FP, has been excluded from the assets held at the end of the 8th FP.

10,47637

APPENDIX

Change in Investment Unit Price┃ Change in investment unit price ┃ As of September 30, 2022
(yen) 150,000

XYR

Tokyo Stock Exchange REIT Index

Issued price at PO
113,024 yen

140,000

130,000

120,000

110,000

100,000

Closing price 123,300 yen
As of September 30, 2022

90,00080,00070,000
4/1 5/1
2020
4/1

6/1 7/1 8/1 9/1 10/1 11/1 12/1 2021
1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1 9/1 10/1 11/1 12/1 2022
1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1 9/1
1/1

1/1

* The starting point of investment unit price is set on April 1, 2020, and the Tokyo Stock Exchange REIT Index is indexed based on the opening price as of April 1, 2020.

38

APPENDIX

Status of Unitholders
Share of investment units by owner type

Major unitholders■Individuals, other ■Financial institutions ■Other domestic companies■Overseas institutions, etc. ■Securities companies

6th FP

24.4%

7th FP

47.3%

25.3%

8th FP

9.9%

45.5%

30.4%

9th FP

Name

9.8%

41.1%

31.2%

39.2%

10.4%

9.6%

14.7%

15.3%

15.3%

14.4%

Number of unitholders by owner type

Individuals, other

Financial
institutions
Other domestic
companies
Overseas
institutions, etc.
Securities
companies
Total

3.7%

4.1%

2.8%

5.6%

(At the end of 9th FP)

Number ofinvestment units(unit)

Ratio*(%)

Custody Bank of Japan, Ltd. (Trust account)

41,92616.79%The Master Trust Bank of Japan, Ltd. (Trustaccount)

28,23411.30%XYMAX Corporation

12,5005.00%

BNP-PARIBAS SECURITIES SERVICES FRANKFURT
BRANCH/JASDEC/GERMAN RESIDENTS-AIFM

10,036

4.02%

The Nomura Trust and Banking Co., Ltd.
(Investment Trust Account)

9,727

3.89%

6th FP

7th FP

8th FP

9th FPSCBHK AC LIECHTENSTEINISCHE LANDESBANK AG

6,641

2.66%

6,318

6,604

8,214

9,681

Individual

5,686

2.27%

35

35

33

34

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

4,241

1.69%

121

132

162

184
JPMorgan Securities Japan Co., Ltd.

3,705

1.48%

BNYM SA/NV FOR BNYM FOR BNY GCM CLIENT
ACCOUNTS M LSCB RD

3,556

1.42%

126,252

50.57%

77

91

110

110

24

24

24

23

6,575

6,886

8,543

10,032Total* The ratio of unitholders is rounded down to the second decimal place.

39

APPENDIX

Overview of Asset Management Company
Overview
Company nameLocation

Organization
XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation
XYMAX Akasaka 111 Building, 1-1-1 Akasaka, Minato-ku, Tokyo

Establishment

August 6, 2007

Capital

0.2 billion yen

Major shareholders
Number of
employees

Lines of business

Executives

Licenses

General Meetingof Shareholders
AuditorBoard of Directors

XYMAX Corporation (100% )ESG Promotion
Committee

33 (as of October 1, 2022) including directors(1) Financial instruments business as prescribed in the Financial
Instruments and Exchange Act(2) Real estate investment advisory business and discretionary realestate investment business(3) Asset management business for investment corporation
Shotaro Kanemitsu, Representative Director and President
Yasushi Yamaguchi, Director
Kazuya Sugimoto, Director
Akimitsu Takagi, Auditor

Financial instruments business: Director-General of the Kanto Local Finance Bureau
Registration (FIBO) No. 1907 (Investment Management Business, Investment Advisory
and Agency Business, and Type II Financial Instruments Business)
Discretionary transaction agency, etc. business: Minister of Land, Infrastructure,
Transport and Tourism Approval No. 118
Real Estate Specified Joint Enterprise: License No. 75 granted by Commissioner of the
Financial Services Agency and Minister of Land, Infrastructure, Transport and Tourism(for businesses referred to in items (iii) and (iv))
Real estate investment advisory business: Registration No. Sogo-57
Real estate brokerage business: Governor of Tokyo License (3) No. 88223

Compliance
Committee

REIT Compliance
Committee

Investment
Committee

REIT Investment
Committee

Internal Audit Team

Compliance OfficeCompliance Officer
Representative
Director

Private Investment
Management
Department

Business
Administration
Division

REIT
Management
Division

40

APPENDIX

Overview of XYMAX Group
Company
nameOfficeXYMAX Corporation (unlisted)

Retail/Store

Logistics

Hotel

Establishm
ent

Location of
headquartersMarch 1, 1990
* Spin-off from Recruit Co., Ltd. through employee

participatory MBO in 2000

1-1-1 Akasaka, Minato-ku, Tokyo

Capital3,256,865,000 yen

Sales

100,538 million yen(actual results for the fiscal year ended
March 2022)

Real estate consulting andmanagement services

Real estate consulting

Representa
tive

Representative Director, Chairman & CEO:
Masafumi Shimada
Representative Director Kenji Yoshimoto

Major
shareholders

XYMAX Shareholding Association, directors& employees, clients and financial
institutions
Total: 337 (as of March 31, 2022)

Number of
employees

6,721 (as of April 1, 2022)* Consolidated figures of the Group

Other specialized
services* Consolidated figures of the GroupCRE strategy, effective
utilization,
development/design
Consulting and planning on
inheritance, fund procurement,
etc.

Asset Management

XYMAX
XYMAX TRUSTXYMAX REAL ESTATE INVESTMENT ADVISORS/MAX-REALTY

Asset management
Asset strategy, etc.

Valormax

SG Asset Max

Real estate
management

Hokkaido

XYMAX HOKKAIDO

Property management
Building maintenance

East Japan

XYMAX

Integrated
management of
store facilitiesTokai

XYMAX TOKAI

KansaiXYMAX KANSAI

Facility management

KyushuXYMAX KYUSHU

Leasing brokerage

Market survey/analysis
Research/planning on
management and repair

Hotel business

Real estate appraisal
Real estate assessment/survey

XYMAX INFONISTAXYMAX REAL ESTATE
INSTITUTE

KARAKSA HOTELSXYMAX ASSETCONSULTING

Cleaning

Security

Satellite office

Risk management

XYMAX SALAMAX SECURITY SERVICEXYMAX ZXY Department

Safety Organization for
Urban Renewal

Realize growth of XYMAX REIT by drawing on all of
the XYMAX Group’s expertise and workforce

41

APPENDIX

Corporate History
Started Office Property Management Business
1982：

1996：

2000：

Started the services such planning, development,
management for the Recruit Group’s own officebuilding investment and utilization after thecreation of the “Buildings-related Division” of
Recruit Group.

Made a Full-scale Entry to Retail Property Management BusinessStarted to provide the property management
service to corporate and private owners otherthan Recruit Group.

2001：

Establishment of Retail Property Management Business Division of XYMAX

MBO from Recruit Group which gave birth to
XYMAX Group

Entry into Hotel-related Business2012：

Acquired 100% stake of Abilitas Hospitality Co., Ltd.

Started Asset Management Business
2007：

2000

2001

Started to provide hybrid
service of real estate andfinance by setting up MAXREALTY, a joint venture with
Sumitomo Mitsui Banking
Corporation.

2002

2003

2004

Made an entry into thebuilding management (BM)service by setting up XACUTechno Service Corporation, ajoint venture with Haseko
Anesis2005

Set up XYMAX Real Estate Investment Advisors Corporation

2006

2007

Enhanced the BM business byacquiring 100% stake of Asahi
Building Management
Services, Inc., a subsidiary of
the Daiei Inc.

2008

2009

2010

Entered into a business tie-up
with SG Holdings Co., Ltd., aholding company of Sagawa
Express Co., Ltd.

2011

2012

2013

Started the private REIT
business through SG Asset
Max Co., Ltd., a joint venturewith SG Realty Co., LTD.

2014

2015

2016

Opened karaksa hotel Osaka
Shinsaibashi I and karaksa
hotel Kyoto I.

2017

2018

Made an entry into
the J-REIT business

42

APPENDIX

Fertile Management Base of the XYMAX GroupThe XYMAX Group has been ranked as No. 1 domestic service provider in the PM business in terms of contracting recordof real estate management projects for six years in a row since 2010*.
■ Human resources: 2,299 people engaged in real estate management, 56 in leasing, and 64 in CRE related business(as of October 1, 2022)■ Relationship with real estate owners: approximately 370 companies (as of the end of July 2022)■ Track record in property sales and brokerage: ：374 buildings, approximately 588.8 billion yen(accumulated total from April 1, 2010, to March 31, 2022)┃ Real estate management record
Actual number ofcontracts

1,070 buildings(As of the end of July 2022)

40┃

Hokkaido ·Tohoku Region

Gross floor area
Approx. 5.8 million tsubo(Approx. 19.0 million m2)

800

Central · Koushin'etsu
Region┃ Facility management record (As of the end of June 2022) ┃Actual number ofcontracts

Approx.

Hokkaido Region

Number of customers

12,600 stores

133 companies

Tohoku Region
10

1,800

Central ·Kanto Region
Chugoku ·Koushin'etsu Region
5,400
Kanto Region
Shikoku Region
Kansai Region 82
612
Chugoku ·600
Shikoku Region 240
12

Kyushu · Kyushu Region
Okinawa Region
65

Kansai Region

Okinawa Region

2,800

9

1,200

* According to each November issue of the monthly magazine Property Management from 2010 to 2015, the XYMAX Group was ranked No. 1 in terms of floor area under management for six

consecutive years since 2010.

43

Cooperation with ITBM Center

Statutory inspections, confirmation of items pointed
out/Proposing correction

Asset Value
Maintenance

Building maintenance and management(cleaning/security/maintenance)

Optimization of management specifications

Confirming of completion of repair
work/Arranging payments

Arranging contractors/Obtaining
estimates/Assessing amounts

Accounting
ReportChecking /Reporting on status of items
requiring repair

Leasing Related
Operations

Repair planning

Report/Proposal

Preparation and submission of annual budgets

Owner

Preparation of monthly reports

XYMAX Group

Issuing invoices/Confirmation of
payment/Payment of expenses

Arrangement of move-in

Tenancy screening/Negotiation for conclusion

TenantManagement

Agency’s relation

Direct leasing

Instruct/Judge

Marketing/Sales strategy planning

Checking completion of agreements on
termination/Restoration

Rent negotiations (raising/lowering)

Handling delinquent tenants

Preparation of detailed building
regulations/Guidance for tenants

Responding to tenants (responses tocomplaints, etc.)

APPENDIX

Property Management
The XYMAX Group provides consistent real estate management and operation services, ranging from Property Management(acting for owners) to Building Maintenance operations.
In addition, the XYMAX Group owns all kind of data on real estate management through a track record accumulated over theyears.
┃ Areas of Real Estate Management Operations┃┃ Data Related to Real Estate Management ┃Contracted rent data
40,807 buildings / 134,677 cases

Asking rent data
58,619 buildings (accumulated total as of March 31, 2022)
19,239 cases (as of March 31, 2022)

Construction work data
163,895 cases (accumulated total as of February 28, 2022)(accumulated total as of March 31, 2022)

Building
Management

44

APPENDIXITBM Center
The XYMAX Group has built a support system that uses IT to achieve a high-quality building maintenance.

┃ＩＴＢＭ ＣＥＮＴＥＲ┃XYMAX ALPHA introduces information communication technology in building maintenance operations tomaintain and provide secure and safe conditions.
Creating a more advanced, higher quality, safer and more secure building maintenance framework and value.
XYMAX ALPHA has introduced an initiative called ITBM (Information Technology Building Maintenance) into
building management.

TA (Technical Adviser) Support

Knowledge Support

TAs give backup to all building maintenance sites

Desired information can be accessed anytime, anywhere from a
dedicated website

While they are stationed at the ITBM Center, TAs use their knowledge, technology,
and know-how in building maintenance based on their experiences at various sites tobackup all site operations.

Information on managed properties as well as knowledge and information concerningbuilding maintenance operations are aggregated into a database. Information can beaccessed anytime, anywhere from devices at all sites.

Real-Time Information Gathering During of an
Emergency or Disaster

Checking with and giving instructions to thesite by the ITBM CenterIn times of fires or natural disasters, information can be shared with therelevant divisions and head office functions on a real-time basis using
video from smart devices connected on-site with the ITBM Center.
Videos sent from the site can be shown on a large display. The
information can be used for real and accurate status reporting, as thevideos and audio exchanged between the both are recorded
automatically.
Video at the time of a fire in abuilding near a property managed by
the Company.
The video was linked to the ITBM
Center after people in the building
were safely evacuated. It was thenused in reporting the status to theowner and the head office.

Site facility staff (making the rounds/on-site)

45

APPENDIX

Facility Management
The XYMAX Group conducts integrated management of retail stores of retail chains by providing services that substantiallyreduce the operational burden on store management.
Conventional store management

XYMAX store management system

Issues for clients
Each store• Shortage of manpower instore management• Optimization of cost andspecifications

Corporate
headquarters
Status confirmation

Inquires
Corporate headquarters

Order placement
Facility management
systemService providers

Orderplacement

24-hour call center

InquiresBenefits of integrated management to clients
 Improving operational efficiency of store management• Introduce call center and store management system• Reduce management staff of headquarters

 Optimizing costs, improving quality• Consolidation of contractors, unification of specifications• Reduce fixed costs (contractor fees) of stores

 Ensure thorough compliance, response to government agencies

Service providers

Each store• Operations related to response to government agencies, routine inspection• Remedy of compliance violations46

APPENDIXKey Points by Asset TypeXYMAX REIT believes that quantity and quality of tenant demand are key factors to assess the profitability of real estate.
XYMAX REIT aims for portfolio growth by comprehensively assessing the factors below by asset type.

OfficeRetailHotel

Focus on properties with strong
attractiveness to tenants

Focus on stability of tenant
rent or property price

Focus on hotels specialized in staynear transportation hubs✔

Properties located in the 8 central✔

Properties where revenue offacilities is available for analysis✔

Hotels specialized in stay whose
revenue trends can be analyzed based on
the operational know-how of the sponsor✔

Properties with a unit rent of 10,000
yen to 20,000 yen✔

Properties where rent burden on
tenants is available for analysis✔

Properties located in areas offering
excellent access to transportation
hubs✔

Properties located within an approximate
5-minute walk from the nearest station✔

Properties where sales price islower than the market priceof overseas visitors is✔ number
expected to increase

wards of Tokyo, Central
Nagoya, Central Osaka andCentral Fukuoka

Properties located in areas where the

80% or more of the portfolio consists of office, retail, and hotel properties
47

APPENDIX

Original Sourcing Strategy
XYMAX REIT captures the needs for real estate disposal gained from the huge customer base of the XYMAX Group.
In addition, XYMAX REIT grasps the trend of real estate owners at an early stage through daily communication, so that opportunities are created for external growth.

┃Direct relationship with real estate owners┃

 More than 70% of real estate owners are concerns over about large-scale renovations of owned properties,
tenant management, and securing funds for reconstruction
 Identifies needs of property disposal arising due to the problem or concern about necessary funds

Acquisition

XYMAX REIT

 Concern for inheritance and business succession tends to increase as real estate owners get older
 Identifies needs of property disposal upon business succession and inheritance by building owners

Asset Management Company
Realization of external growth

Capture disposal
needs

XYMAX Group

Survey on building owners’ situations by XYMAX Real Estate Institute┃Anxiety in future building business (by the number of owned buildings)┃

Owner relationship, customer base
General businesscompany

Building owners

Others3 buildings or moreManagement of tenants forlarge-scale renovation andreconstruction
Securing funds for large-scalerenovations and reconstruction

Financing
InheritanceROE management

Financing

30%

50%

20%

36%

42%

23%

1-2 buildings

Measures against inheritanceand business succession

3 buildings or more
1-2 buildings

24%

52%

30%

46%

3 buildings or more

16%

1-2 buildings

20%
0%Percentage of client types for real estate management business(As of the end of July 2022)

Number ofproperties undermanagement

1,070

Others
41.7%

J-REIT
19.3 %

Individual,
etc.
39.1%

● J-REIT
J-REITs including XYMAX REIT
● Individual, etc.
Individuals, asset management companies,
general business companies, etc.
● Others
Private REITs, private funds, real estatecompanies, etc.
Source: The asset management company based on material
provided by XYMAX Corporation

24%

39%

45%

45%
20%

40%
Concerned┃Diversity among real estate owners┃

24%

35%
60%

80%

Slightly concerned

100%

Not concerned

Source: “Building Owner Survey 2017” by XYMAX Real Estate Institute┃Concerns over future building business (By age, multiple answers)┃
Concerned

Management of tenants for largescale renovation and reconstruction

Slightly concerned

Not concerned

40 or younger
50-59
60-69
70 or older

Securing funds for large-scalerenovations and reconstruction

40 or younger
50-59
60-69
70 or older

Measures against inheritance andbusiness succession

40 or younger
50-59

60-69
70 or older

0%

20%

40%

60%

80%

100%

Source: Created by XYMAX Real Estate Institute based on the request from the asset management company

48

APPENDIXXYMAX Group’s track record of real estate disposals and real estate brokerage
External growth (number of cases, total amount and area) by capitalizing on track record in real estate
sales and brokerage.
Use and geographical area of real estate in real estate disposals andreal estate sales brokerage results

To investment corporations, etc. */Whole
Disposals and sales
brokerage
Number of cases
Disposals andsales brokerage
Total
Average perbuilding

3.3%

37

374

Office10.7%

Retail

50.8%

1.7%

588.8 billion yen

Logistics

Land

11.5%

4.1 billion yen

17.4%

Tokyo

0.7%

residential

12.4%

23 Wards of Tokyo

2.1%

Hotel

9.6%

155.3 billion yen

5 Wards of Tokyo

39.2%

8.8%

4.9%
5.0%

Nagoya Area
Fukuoka Area

21.8%

Other

Other

By asset (whole)(based on transaction price)

1.5 billion yen

Other Tokyo
Metropolitan Area
Osaka Area

By area (whole)(based on transaction price)

Source: XYMAX Corporation

Accumulated track record of real estate disposal and brokerage services(accumulated total from April 1, 2010, excluding sales to XYMAX REIT)(hundred million yen)
6,500
6,000
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

12.9 billion yen to investment corporation, etc./Whole 49.0 billion yen(Actual results from April 1, 2010 to March 31, 2022 Fiscal year average)■ Sale and intermediary to other thaninvestment corporations, etc.

■ Sale and intermediary to investment
corporations, etc.

2,071
269
End of March
2011年3月末
2011

645
427
End of March
2012年3月末
2012

934

1,251
694

756

End of March
2013年3月末

End of March
2014年3月末

End of March
2015年3月末

2014

2,977

3,809

4,246

4,335

1,676

585
2013

2,607

3,323

2015

1,075

1,148

1,384

1,482

1,491

1,553

1,553

End of March
2016年3月末

End of March
2017年3月末

2018年3月末
End of March

End of March
2019年3月末

End of March
2020年3月末

2021年3月末
End of March

2022年3月末
End of March

2020

2021

2022

2016

2017

2018

2019

Source: XYMAX Corporation* Vehicle for acquisition and holding of properties with the intent to transfer them to real estate investment corporations

49

APPENDIX

Accumulation and Utilization of Original Data by XYMAX Real Estate InstituteTechnology/
information
providing

XYMAX
Group
business

XYMAX Real Estate
Institute Corp.

Details of the information delivered

Publication
Of
Mass media
information

Various
media

Posting, contribution and lectures to mass
media and various media (example)
Posting

We are providing the public with the results ofanalysis and research from a unique perspective
based on the data we have gathered.

XYMAX Real Estate
Institute Website(Japanese version only)

Survey and analysis of the real estate market
 Quarterly announcement of benchmarks
for the rental office market
 Development of new
benchmarks/contracted rent DI, newcontracted rent index, etc.
 Disclose the Office pyramid Announcement of forecasts for thevolume of new offices in Tokyo and Osaka Fact finding surveys of small and mediumsized building owners
 Fact finding surveys of retail stores(renovations, openings/closings)

Contribution ARES Real Estate Securitization Journal
The Japanese journal of real estate sciences
BUILDING TOKYO, etc.
LecturesLand Economy and Construction andEngineering Industry Bureau, Ministry ofLand, Infrastructure, Transport and Tourism
Institute for Built Environment and Carbon
Neutral for SDGs (IBECs)
at Will Work
Back Office EXPO
Japan Building Management InstituteJoint study

Japan Facility Management Association(JFMA), etc. Hitotsubashi Univ., Nihon Univ.,
Waseda Univ., Univ. of Hyogo, Keio Univ.,etc.

Other

WORKTECH
Participation in CRE at MIT in USA as an
Industrial Partner

Survey and analysis of tenants
 Announcement of office floorspace per person and rent per person
 Analysis of lease periods of office tenants and retail tenants Tenant opinion surveys regarding offices, office fire prevention, how offices are being used,
etc.

Survey and analysis of energy

Survey and analysis on
workstyles and offices

 Survey on energy consumption and costs foroffice buildings
 Analysis of the economic feasibility ofenvironment management Survey on office demand in major
metropolitan areas
 Survey on office workers in the Tokyo
Metropolitan area

Nihon Keizai Shimbun, Nikkei Business Daily,
etc.

50

APPENDIX

Office Market Analysis (1)┃Office market cycle in the 23 wards of Tokyo ┃(New contracted rent index)

120
110

┃ New contracted rent by office building scale┃

Rent Index (100=2020Q1)

130

2008Q2Rent Index (100＝2020 Q1)

120

2020Q2

Small‐ and medium‐scale office buildings(total floor area: less than 5,000 tsubo)
Large‐scale office buildings(total floor area: 5,000 tsubo or more)

110

100

100

90

2022Q290

80

2005Q1

80
70

2010Q2

60
0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

70

Q1: Jan. - Mar. Q3: Jul. - Sep.
Q2: Apr. - Jun. Q4: Oct. - Dec.

60

( Vacancy rate： ％)

2021
Q2

2021
Q3

2021
Q4

2022
Q1

2022
Q2

Vacancy rate

2.96%

3.41%

3.58%

3.60%

3.91%

New contracted
rent index

89

86

88

86

85

Source: XYMAX Real Estate Institute Corp. (Vacancy rates for March 2011 and before are calculated based ondata from a major leasing brokerage company)

2021
Q2

2021
Q3

2021
Q4

2022
Q1

2022
Q2

Small‐ and medium‐scale
office buildings (total floorarea: less than 5,000 tsubo)

90

91

90

92

88

Large‐scale office buildings(total floor area: 5,000
tsubo or more)

89

83

87

82

83

Source: Survey Report by XYMAX Real Estate Institute Corp. “Office Market Report Tokyo Q2 2022”

51

APPENDIX

Office Market Analysis (2)Distribution of contracts concluded in the 23 wards ofTokyo (by unit price of contracted rent)(％)

Large segments ofcontracts concludedin the market
(%)
20
18
16
14
12
8
6
4
2
0

(%)
20
18
16
14
12
8
6
4
2
0

(%)
20
20%
18%
18
16%
16
14%
14
12%
12
10%
8
8%
6
6%
4
4%
2
2%
0%
0

Vacancy rate by time required to walk to the nearest
station in the 23 wards of Tokyo
14.00

Apr. – Jun. 2012
Number of cases: 593
Number of targeted
properties: 568

All locations (combined)

12.00

3–5 minute walk to the nearest station

10.00

Apr. – Jun. 2020
Number of cases: 622
Number of targeted
properties: 577

Within a 3‐miunte walk to the nearest station

More than a 5‐minute walk from the nearest station

8.00

6.00

4.00

Apr. – Jun. 2022
Number of cases: 1,076
Number of targeted
properties: 927

2.00

0.00

Unit rent (yen/tsubo)
Source: Created by XYMAX Real Estate Institute upon the Management Company request of Asset Management Company

Source: Created by XYMAX Real Estate Institute upon the request of Asset Management Company

52

APPENDIXXYMAX Group’s Expanding B to C Business Activities (ZXY)
Membership satellite office business “ZXY” leading work-style reform┃ Workplace service enabling free work-style ┃Through our partnerships forservices from othercompanies, members are able
to use cooperating locations
through the ZXY members’
website.

Using clean energy
Energy, including electricity
and gas at all of ZXY’s directly
managed locations, is in effectelectricity sourced fromrenewable energy.
*We have procured and are using
J-Credits for renewable energy
equivalent to the annual CO2
emissions for FY2022.

 Location of workplaces

From July, ZXY members canuse RoomUs2 locations
operated by Keikyu
Corporation and KEIO BIZ
PLAZA2 locations operated by
Keio Corporation. (RoomUs
Kanazawa Bunko)

 Change in number of memberships and workplaces
Members

Members

Workplaces

Workplaces

550,000

300

495,000

270

440,000

240

385,000

210

330,000

180

275,000

150

220,000

120

165,000
110,000

The 200th workplace opened in December 2021
and the accumulated floor area topped 10,000
tsubo in February 2022.

90
60

55,00030

00

In July, two additional locations opened in
the Kansai area. In August, a new location
opened in Sendai, accelerating the
openings in major regional cities. They
serve not only as an alternative form ofworkplace, different from working athome, but also meet the requirements forbusiness trips. (ZXY Sendai)

Source: XYMAX Corporation

53

APPENDIXXYMAX Group’s Expanding B to C Business Activities(karaksa hotel)
The XYMAX Group is expanding its own brand, “karaksa hotel” nationwide mainly targeting
tourists
Hokkaido

Osaka
Nov. 2017
Nov. 2019

karaksa hotel Osaka Namba *112 rooms
396 rooms karaksa hotel grande Shin-Osaka Tower *Jan. 2018

177 rooms karaksa hotel Sapporo*

Kyoto
Mar. 2016 36 rooms
karaksa hotel Kyoto I *karaksa hotel Osaka Namba

karaksa hotel Sapporo

karaksa hotel grandeShin-Osaka Tower

karaksa hotel Kyoto I

Tokyo
May 2019
Jul. 2019
Spring, 2023

OpenedTo be opened

57 rooms karaksa hotel premier Tokyo Ginza *151 rooms karaksa hotel TOKYO STATION *95 rooms

karaksa hotel premier Tokyo Ginza

karaksa hotel TOKYO STATION

Source: XYMAX Corporation (as of October 2022)* As of the date of this material, XYMAX REIT has not determined the acquisition of these properties and there is no guarantee that XYMAX REIT will acquire them in the future.

54

Disclaimer

This document is provided solely for informational purposes with regard to XYMAX REIT Investment Corporation (hereinafter, “XYMAX REIT”) and is not intended
to serve as an inducement or solicitation to trade in any product offered by XYMAX REIT. Decisions on investments are to be made using your own discretion andresponsibility.

Purchase, sale and such of XYMAX REIT’s investment units entail the risk of incurring a loss due to fluctuations in the investment unit price.
Please consult with your securities company regarding the purchase of XYMAX REIT’s investment units or investment corporation bonds. Information presented
in this document should not be interpreted, unless otherwise specified, as constituting disclosure documents or an asset management report required under
Financial Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations.
XYMAX REIT and XYMAX REAL ESTATE INVESTMENT ADVISORS Corporation (hereinafter, the “Asset Management Company”) to which XYMAX REIT entrusts the
management of its assets are taking all possible measures to make the information contained in this document the best available. However, no assurances canbe given regarding the accuracy, validity and completeness of the information, regardless of whether it is information prepared by XYMAX REIT or the AssetManagement Company, or information received from a third party.
Among the information provided in this document, statements other than those pertaining to facts in the past or present are forward-looking statements
presented by XYMAX REIT or the Asset Management Company according to assumptions or judgement based on information available as of the date of thisdocument (the date if specified otherwise in the document). Forward-looking statements are based on assumptions such as the investment policy of XYMAXREIT, applicable laws and regulations, market environment, interest rate environment, business practice and other factors as of the preparation date of thisdocument, and do not reflect or consider changes in situations after the preparation date. Forward-looking statements include, explicit or implied, uncertainties
of existing risks, unknown risks and other factors, and may materially differ from actual performance, business results, financial status and such of XYMAX REIT.
Although this document includes statements concerning future performances, expectations and other forecasts, such statements do not guarantee the future
performances, expectations and other forecasts.
The content of this document is subject to change or repeal without prior notice. XYMAX REIT and the Asset Management Company are under no obligation to
update or publicly disclose the content of this document (including forward-looking statements).

Duplication or reproduction of any content presented in this document without the prior consent of XYMAX REIT or the Asset Management Company is strictly
prohibited.

55